- 1 2 WN 3 4 5 678 8 Committed capital 90 10 Hurdle rate 11 Capital call 12 Deal 1(Beg. Of the year 1) 13 Deal 2(Beg. Of year 1) 14 Deal 1 EXIT (End. Of year 2) 15 Deal 1 Profit 16 Theoretical Carried interest (20% x Deal 1 profit) 17 Cash Flow 18 IRR 19 Analysis 20 A 21 22 Irr could also be computed as follows = ((FV/PV)^t)-1 23 2 24 B Year 0 Year 1 $100 20% 8% 75 2.8% 40 35 -40 6.1% GPS are unentitled to the carried interest 0 D Year 2 45 5 1 45 E 1 2 3 4 5 6 7 8 Committed capital 9 =A4 10 Hurdle rate 11 Capital call 12 Deal 1(Beg. Of the year 1) 13 Deal 2(Beg. Of year 1) 14 Deal 1 EXIT (End. Of year 2) 15 Deal 1 Profit 16 Theoretical Carried interest (20% x Deal 1 profit) 17 Cash Flow 18 IRR 19 Analysis 20 21 22 Irr could also be computed as follows = ((FV/PV)^t)-1 23 A =-C12 B =D14/((B17^2)) Year 0 =IRR(B17:D17) IF(B18>C10,"GPS are entitled to the carried inte 100 0.2 0.08 =SUM(C12:C13) 40 35 0 C Year 1 D Year 2 45 =D14-C12 =C9*D15 =D14 E